prepared ahead of last week’s full council decision – taken behind closed doors – reveal the details of the financial package Rossendale council has put in place to deliver Phase 2 of its Spinning Point development.
The report states: “Whilst recognising the wider economic benefits of Spinning Point Phase 2, proceeding with the scheme is a major consideration as the single biggest investment project that the council has ever undertaken.”
It recommends that members agree to the disposal proceeds of the Ex-Rosso depot in Haslingden being used to finance the project ‘when realised’.
It states that a 30-year borrow is deemed to be the ‘most prudent’ option and current long-term borrowing rates are 2.49 per cent. The borrowing is in addition to £1.9m grants from the Local Enterprise Partnership and the £3.5m contribution from Lancashire county council for the new bus station.
Construction of Spinning Point’s first phase – the reconfiguration of the old town hall, retail units and the bus station – is due for completion in May 2019, it adds, stating: “Not proceeding or delivering on time with Phase 2 would result in a claw back of £0.9m grant for Phase 1 and the £1m grant award for Phase 2 by the Lancashire Enterprise Partnership.”
The architectural drawings currently show provision for five two-bed apartments (block across from Kay Street), and six one-bed apartments and 18 two-bed apartments (block adjacent to Kay Street), with both sale and private rental options being explored. The agenda adds that the scheme provides an opportunity to put together a long term plan for car parking in the town, ‘in the best interests of customers, business and other stakeholders’. It is understood dedicated parking for the spa is a priority, while consultants have advised that private car parking will be needed for the residential scheme.
The spa includes a thermal suite, relaxation room, sleep lounge, treatment rooms, manicure and pedicure stations, hot yoga studio, cafe and social space. The report adds that the council has negotiated to spread the risk with its development partner Rossendale Together Barnfield by only taking ownership of a retail and food beverage units from Barnfield upon the signing of the lease.
It adds: “The size of units and their annual rental fees are such that they are aimed at medium sized retailers, probably small independent owner managed businesses together with national chains operating out of medium size premises.”